Montgomery County Government: Organizational and Fiscal Structure

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Montgomery County Government Organizational and
Fiscal Structure

• Jennifer Hughes, Director
• Office of Management and Budget
• September 21, 2012
• www.montgomerycountymd.gov/omb

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Overview

• Organization
• Oversight and Accountability
• Budget Process Fiscal Structure

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Oversight and Accountability

• Internal Audit (Executive Branch)
• Annual Audit of financial statements by an
  independent audit (Executive Branch)
• CountyStat (Executive Branch)
• Inspector General (Legislative Branch)
• County Council Committees
• Office of Legislative Oversight (Legislative
  Branch)
• P-Card Monitoring and Reviews (Exec. Branch -
  DOF)
• Expenditures over 10,000 (Exec. Branch - DOF)
  Other forms of Accountability Supervisory to
  County Executive and Chief Administrative
  Officer and to County Council.
• Media
• Elections, Charter questions, and Referenda

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Major Differences Between the CIP and the
Operating Budget

• CIP
• 6 Year Budget (Capital Budget is the first year)
• Approved biennially.
• Infrastructure (roads buildings)
• Long-life
• Often debt-financed
• Majority of spending is for sitework and
  construction

• Operating Budget
• 1 Fiscal year
• Approved annually.
• Programs and services
• Expenses typically continue every year.
• Typically funded with current revenues
• Majority of spending is for staffing costs

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Budget Process Key Facts

• The County Executive develops and recommends
  budget proposals the Council authorizes
  expenditures and sets tax rates.
• Annual six-year Public Services Plan, Operating
  Budget, and Capital Budget, and biennial six-year
  Capital Improvements Plan.
• Capital budget submitted to Council by January
  15th proposed Operating Budget by March 15th.
• Aggregate budget cannot grow more than CPI-U
  Washington-Baltimore without a minimum of six
  Council votes.
• Executive veto or reduction of items in Council
  approved budget.
• 1990 Charter amendment limit on property tax
  revenues. Charter Limit exceeded four times
  FY03-05 and FY09. As of 2008 Charter amendment,
  to exceed the Charter Limit, requires 9 council
  votes.

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Summary Operating Budget Process

• Sept-December MCG Departments Prepare
  Submissions
• December/January Agencies submit budgets to
  County Executive/Council
• December March OMB Reviews Submissions and
  Makes Recommendations to County Executive
• March 15 County Executive Transmits Budget to
  the County Council
• Early April County Council Public Hearings
• April May County Council/Committees reviews
  budgets
• By June 1 County Council Approves Budget

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FY13 ALL AGENCIES / ALL FUNDS
WHERE THE MONEY COMES FROMTOTAL APPROVED
RESOURCES - 5,106.2 (million)
WHERE THE MONEY GOES TOTAL APPROVED USES OF
FUNDS - 5,106.2 (million)
This total covers the full Operating Budget, and
funds to the CIP, Debt Service, and Reserves. Of
this amount 4,612,253,211 is approved in the
Operating Budget.
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FY13 EXPENDITURES BY FUNCTION
TOTAL EXPENDITURES - 4,612.3 (million)
Total M-NCPPC includes 4.8 million debt service.
TAX SUPPORTED EXPENDITURES - 4,020.5 (million)
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FY13 TAX SUPPORTED AGENCIES AND FUNDS
WHERE THE MONEY COMES FROMTOTAL APPROVED
RESOURCES - 4,428.1 (million)
WHERE THE MONEY GOES TOTAL APPROVED USES OF
FUNDS - 4,428.1 (million)
This total covers the full Operating Budget, and
funds to the CIP, Debt Service, and Reserves. Of
this amount 4,020,477,004 is approved in the
Operating Budget.
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FY13 Tax SupportedExpenditures by Function
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Revenue Volatility Income Taxes
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Est. FY13 Est.
Income Tax 940.859 1044.562 1265.377 1291.34 1,291.72 1,042.10 1,039.23 1,227.07 1,263.96
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Revenue Volatility Transfer Recordation Taxes
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Est. FY13 Est.
Transfer Tax 133.7 145.5 106.9 80.4 64.8 77.1 71.8 74.2 80.7
Recordation Tax 87.6 96.2 72.7 54.7 42.4 42.8 57.7 45.3 55.9
Total 221.3 241.7 179.6 135.1 107.2 120.0 129.5 119.5 136.6
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Montgomery County Budget Growth Rates
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Montgomery County Govt - Tax Supported 11.0 11.4 14.1 6.7 1.5 -2.2 -7.0 5.1 11.8
Total Tax Supported 8.1 8.3 9.8 7.4 3.7 1.6 -5.0 3.5 6.2
Total Budget 7.4 7.7 9.0 7.2 4.3 3.0 -4.5 2.2 5.6
FYs 05-07 36.5
FYs 08-13 15.9
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Operating Budget Rate of Growth